Bad Credit Vs. Tote The Note

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Bad Credit Vs Tote The Note Most people think that because they have bad credit there is only going to be one car buying option available to them and that is tote the note or better known as buy here pay here. There is also a large majority of people that believe that subprime used car loans and tote the note car loans/car buying will be the exact same thing. This is by all means not true, there are very distinct differences and while not either/or is right for everyone there will be some clear cut things that should make the decision for you.

Tote the Note

Good chances are you know a little something or two about bad credit auto loans, but there will also be a good chance that you know nothing about tote the note or very little about it at least. When you go to a used car dealership sometimes they are going to offer in-house financing which will designate if it is or is not a tote the note dealer depending on if they do offer this service or not.

If they do offer this then you will be working with a buy here pay here dealership and can get financed directly from them. This means though that they are going to be in full control of the loan and terms which sometimes can be a bad thing. In a lot of respects it is going to be very similar to taking out a bad credit auto loan but will have some differences.

Here are some of the basic Pros and Cons to tote the note:


  1. Guaranteed Transportation - The largest beneficial point that you are going to find from working with in-house financing will be the fact that you are guaranteed to be approved and will be able to get the transportation you require.
  2. Trade In Deals - Another great aspect is because of how their business works they will typically be able to get you much more flexible offers on trade ins which can work in your favor and get you a little extra for your current vehicle.


  1. Re-establishing your Credit - Unlike with a bad credit auto loan where you are going to be able to recover your credit score over the course of the loan that will not happen with tote the note. The reason for this is because they typically do not report your payment record to the credit bureaus.
  2. High Risk for Repossession - This one is situational, but depending on the dealership it is possible that if you are even one day late on payment that they will repossess the vehicle. Not all dealerships will do this, but just know it has been known to happen.

What Should you Choose

It can be hard to say which is best for you, but if there is potential to be approved for a bad credit auto loan it would be highly recommended that you apply for that. The main reason for that is because you want to put yourself in a better credit situation for the future and there is no better way that you can do that. We here at specialize in helping those in bad credit situations to get auto loans all by filling out an application. It costs nothing and will be no work on your part. Before you know it if it is possible to get you financing we will have you in front of a dealership. So apply today!

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Do you meet the basic qualifications?

  • At least 1 year with current employer
  • A minimum income of $1,500 per month
  • No repossesions within the last year
  • Any bankruptcies must be discharged
  • Money down may be required, but not in all cases
  • Must be a current resident of the U.S. or Canada